Premature selling?

Everyone is aware of how bearish the global markets are including the US markets, especially today.

Nonetheless, let’s consider the thought of premature selling. There are a few key events and outcomes to consider, and look forward to. First, Q3 earnings. We are about a month away from Q3 earnings where banks will kick off the earnings season. Only then we will know whether the stocks current valuation is justified and whether the companies guidance signal a positive or negative outlook. Selling now seems early to me as Q3 earnings season can provide a broader and clearer picture to guide investors decision making. We don’t wish to end up selling quality stocks at a bargain price right now.

Second, Fed meetings. Only when the precise timeline of when the Fed is going to taper and by how much, helps provide a more rational approach in deciding on what to do with the current stock portfolio.

Third, the outcome of Evergrande. It is difficult to ignore the possibility of Chinese authorities stepping in to rescue it. Afterall, the fallout of Evergrande may have great potential impact on China’s financial system, so it makes sense to expect soon on some form of bailout by the authorities and actions to control spillover risks. Time will tell, but for now, any clues as to the outcome of the Evergrande crisis will be market moving in either directions and have to be closely watched.

Last but not least, the U.S. easing of travel restrictions for vaccinated international visitors is a positive sign that promotes economic growth.

Share with me your thoughts on whether you are a seller or buyer during this tumultuous time. @Tiger Stars$DJIA(.DJI)$$S&P 500(.SPX)$$NASDAQ(.IXIC)$ [Glance]